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To: hoosiermama; Landru; maggief; CutePuppy; GOPJ; Just mythoughts; stephenjohnbanker; smokingfrog; ...
Madoff's working class victims view all of this w/ a mix of disgust and disinterest. Some are losing their homes.

Some victims have pushed for legislation that would change the rules and allow the SIPC make payments to people whose money was lost through so-called "feeder funds." Their proposals haven't picked up momentum, though, in part because of a public perception that most Madoff victims were, and remain, quite wealthy.

Letters and e-mails from less wealthy victims have poured into the courthouse. Seems like Madoff “allowed” a few working class people into his “exclusive” investment scheme. These people were used as a funding source to insure the filthy rich Palm Beach crowd could keep on sucking out profits..........like Picower’s 950% takeout.

A retired elementary school teacher in Fort Lauderdale, Fla., wonders what to do next. She rolled $225,000 from her retirement plan into a fund run by a well-regarded member of her church, who in turn invested it with Madoff. Now, it's all gone. If she had known Madoff personally and invested with him directly, she might be able to get every dime of her investment back through SIPC. Instead, she may get almost nothing. For now, she said, the only solution is for her husband to put off retirement and keep working, even after recent sextuple bypass surgery. "We really did need that money very much," she said. "I am in constant anguish."

A single mother wrote about trying to save money by turning down the heat in the house and keeping the lights off. Victim after victim said they were being forced to sell their homes. A Connecticut doctor said his practice's entire retirement plan had been wiped out, leaving 140 employees in the lurch.

"People like us, we are invisible," said a farmer near Boulder, Colo. who lost her savings in the scandal. "We feel we are all victims of the same crime, and we should be entitled to the same relief (as Madoff's wealthy victims)."

25 posted on 10/26/2009 10:13:19 AM PDT by Liz (ALL FOX---ALL THE TIME---24/7)
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To: Liz
As much as I empathize with people who are legitimate victims (not "dial-a-return" or tax evading / money laundering crooks) of Madoff or similar schemers, I have to say that if they didn't put their money into a self-directed account, directly into an institution which is SIPC or FDIC member, but instead are chasing returns by "investing" through "managers" they have little recourse but recovery lawsuit against manager.

Having SIPC reimburse third-party, not SIPC-insured, fraud losses is somewhat akin to having a property insurance company cover the cash that was stashed under the mattress which was burned in the house fire.

Actor Nicolas Cage Sues Ex-Manager, Claiming "Ruin" - BL, 2009 October 17, by Andrew M. Harris


26 posted on 10/26/2009 6:39:17 PM PDT by CutePuppy (If you don't ask the right questions you may not get the right answers)
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